Hybrid Fuel Systems Forms US Network for CNG & Propane Conversions

17 November 2005

Hybrid Fuel Systems (HFS) has formed a multi-state franchise network of companies to convert and then service gasoline and diesel engines to operate on natural gas or propane.

At present, the Company has service and installation network members in the states of Alabama, Arizona, Illinois, Indiana, Missouri, New Jersey, Oregon, Texas, Utah and Wisconsin. Together with Company owned sites in Oklahoma and Georgia, Hybrid now has an installation and service capability in 12 states.

The Company conducts training sessions on a quarterly basis and intends to expand its franchise-approach into other states during 2006.

To become an authorized Hybrid installation and service center, prospective members must complete a training program at the Company’s facilities as well as complete the conversion of a vehicle. Upon successful completion of training and an inspection of their converted vehicle, Hybrid designates the prospect as an authorized service and installation center.

Under the franchise agreement, Hybrid derives revenues from the sale of systems and components and the installation and service partners earn their fees through providing both those services. Each new service and installation partner will receive an exclusive territory and Hybrid will be very strict in protecting their franchise.

The company supports dedicated and bi-fuel conversions for a range of gasoline engines, and dual-fuel conversions for diesel.

In countries experiencing—or mandating—rapid growth in natural gas vehicles, conversions play a major role in increasing the numbers. The type of acceleration of demand seen in countries such as Brazil (earlier post) has yet to occur in the US, and the conversion industry is correspondingly small. (The US DOE Alternative Fuel Data Center lists only 15 conversion companies—one of them Hybrid Fuel Systems.)

Comments

Dear Sirs,

We are based in Tbilisi, Republic of Georgia, and in association with the Technical University of Georgia we are developing a CNG conversion facility to service gasoline fueled vehicles in Tbilisi. This could also evolve into into a network for such services throughout Georgia. To this end we would like to explore franchising opportunities with the Green Car Congress, and in the first phase we would like to find out what would be your requirements with respect to management, relevant experience and financing.

I am interested in converting my Chevrolet 3500 ( used for deliveries)to CNG. However, I cannot find any sort of list of commercial fueling stations in Georgia anywhere. Can you please help. Thank you.